HERNDON, VA, and CHICAGO, Jan. 11, 2005  Finetre Corporation and Morningstar, Inc. today announced that Morningstar has acquired Finetres VARDS unit for $9 million in cash, subject to an adjustment for working capital. The transaction was completed on Friday, Jan. 7, 2005.

The Variable Annuity Research and Data Service (VARDS), founded in 1988, provides research and data on variable annuity products and is used by nearly every firm that offers variable annuities. The service is also used by many brokerage firms for research, due diligence, and suitability determination.

The firms plan to work together to integrate the VARDS Web-based research products with Finetres AnnuityNet platform, which provides brokerage firms with online transaction processing and compliance oversight capabilities for annuities and other insurance and investment vehicles. The planned integration will provide brokers with access to information and research in real time as they complete transactions.

We have been collecting variable annuity data since the early 1990s, and we significantly enhanced our VA data in 2003, said Joe Mansueto, chairman and chief executive officer of Morningstar. The VARDS acquisition further strengthens Morningstars investment database and complements our business well. Many people invest in variable annuities. Its important that they have the best possible information to help them choose wisely among a wide array of investment offerings.

Finetres core business of annuity transaction processing and compliance automation is experiencing very rapid growth. That fact combined with the obvious strategic fit of VARDS with Morningstar makes this transaction a win for all parties, especially VARDS clients, said Shane Chalke, chief executive officer of Finetre. This sale will enable us to make additional strategic investments in our core business and increase the management bandwidth we can focus on carefully managing that growth.

Finetre acquired Atlanta-based VARDS from Wachovia Corporation in 2003 as part of its purchase of Wachovias Info-One unit. Since that time, Finetre has implemented many improvements and product upgrades and significantly increased revenue.

Finetre was advised in the transaction by Chris DeWinter of Cypress Associates, LLC.

Chicago-based Morningstar, Inc. is a leading provider of independent investment research in the United States and in major international markets. The company offers an extensive line of Internet, software, and print-based products and services for individuals, financial advisors and institutions. The company has operations in 16 countries.